Special Topics in international Business Assignment

Special Topics in international Business - Assignment Example (Aswathappa, 2006). Trade barriers greatly affect the decisions on international businesses as they impose restrictions on international trade in specific country or economic region. Thus, the company willing to export goods to a foreign market where trade barriers are high may find this business strategy inevitable because of high costs incurred in result of trade barriers (Aswathappa, 2006). Globalisation has created both opportunities and challenges for the international business. Some of the major opportunities are: opportunity to reach global market and to increase significantly revenues, opportunity to reach economies of scales, to reduce manufacturing costs by otsourcing production facilities to other countries, opportunities to gain access to technical expertise and technical know-how, opportunity to reach global resources that are not available or expensive in home country risks (Wild & Wild, 2011). Thus, for example, the UAE-based airline company, the Emirates Group, was founded in 1985. Nowadays, the company provides passenger, postal and cargo carriage services across the world (Wild & Wild, 2011). Globalisation allowed the company to expand significantly the number of destinations up to 100, to achieve economies of scales, to develop additional sources of revenue, etc. However, globalisation poses substantial challenges for international business as well. While the international companies gain access to global markets, they simultaneously face with fierce competition on behalf of both local and international companies. Another significant challenge is associated with the fact that companies need to work in different countries with different cultures. The companies that have no previous experience in international business it might be quite difficult to adjust to the cultural differences. With the development of IT operations the